The Sunderland-based group is yet to confirm the exact number of redundancies but bosses said the loss of more than 20 people is "possible".

Staff are currently being offered voluntary redundancy packages to avoid future compulsory cuts.

The 140-year-old business, which employs more than 300 people across its three sites, recently lost a major national newspaper account it said.

In addition, the growth of electronic bingo and internet gaming, along with a change in gaming regulations and the introduction of the smoking ban, have also contributed to the tough trading contiditions faced in the niche printing sector.

Managing director Paddy Cronin said other areas of the business continued to perform well and ensured the long-term future of the group.

He added: "We have a strong and viable core business with a positive future ahead of us. However, in order to secure this I believe that we need to reduce staff numbers to adapt to the scale of our markets.

"Edward Thompson remains on a sure footing but it is important that the company as a whole adapts to fit the changes to its core markets."

Last year's PrintWeek Top 500  put the company 102 with pre-tax profit at £1,586,000 on a turnover of just under £20.5m. Its kit list includes a Heidelberg Speedmaster five-colour press, as well as digital and large-format machines.